This transaction set communicates air shipment details between freight forwarders, airlines, and shippers. Typically sent by a freight forwarder or shipper to an airline or air carrier, it provides comprehensive information about a shipment being transported by air. The 104 contains critical shipment data organized through mandatory segments including the FOB (F.O.B. Related Instructions) segment, which establishes freight terms and conditions, the L5 (Description, Marks and Numbers) segment, which details the cargo contents and identification, and the SL1 (Tariff Reference) segment, which specifies applicable freight rates and classifications.

Consider a practical scenario where Global Trade Logistics, a freight forwarder, sends an X12 104 to Skyway Airlines to communicate an upcoming shipment. Global Trade Logistics uses the N1 name segments to identify itself as the forwarder, the shipper (ABC Manufacturing), and the consignee (Pacific Imports Ltd.). Within the FOB loop, they reference the freight terms, specify any hazardous materials using the H1 and H2 segments if applicable, and note insurance details via the M1 segment. The L5 loop items describe the shipment contents (e.g., “500 units electronics equipment, 10 pallets, total weight 2,500 lbs”), while L1 segments itemize charges. By structuring this data in the 104, Skyway Airlines receives all necessary shipment information to process the booking, assess handling requirements, and calculate final freight costs.